New US Law Allows IRS To Deny or Revoke Passports To Delinquent Taxpayers
December 28, 2015 in News & Tips
Are you an international travel enthusiast? The IRS could crimp your style. As of Dec. 4, the U.S. signed into law, the FAST (Fixing America’s Surface Transportation) Act permitting the State Department to deny or revoke the passport of any seriously delinquent taxpayer by the IRS, and taxpayers with incorrect Foreign Bank Account Report (FBAR filing). Delinquencies include any outstanding debt for federal taxes in excess of $50,000 (indexed annually for inflation), including interest and penalties.
The new FAST law will primarily impact American taxpayers overseas, including domestic taxpayers and non-citizen spouses of Americans with any of the following: A foreign pension, non-U.S. investment funds, ownership of a foreign entity (company, partnership, trust, etc.), signatory or other authority over a foreign financial account, a foreign inheritance, expatriate benefits from your employer, stock options, earned income more than around $100,000 a year in a foreign country, foreign bank account balances over $10,000, foreign financial assets over $50,000, a non-citizen spouse, foreign life insurance, mortgage in a foreign currency, sale or rental of real estate outside the U.S., self-employment income and more.
The IRS is cracking down aggressively on US citizens that keep money and assets overseas and do not appropriately file their FBAR form. The U.S. has agreements with countries and banks to find out which US citizens hold what accounts in banks and brokerage houses –and will find you even if you lay low. The IRS FBAR instructions are complex, may be different for every situation, and must be filed separately from your tax return. You must take the initiative to appropriately file your IRS required FBAR form.
In addition, any domestic residents or citizens with individual tax problems may also be effected. This includes tax liability coming from your Form 1040 tax return, or any Civil Penalties associated with your social security number. Any unfiled tax returns can also prompt the IRS to file on your behalf, which may incorrectly inflate your tax liability significantly.
Any of these situations could easily cause you to have a significant tax debt or penalties above the $50,000 threshold if reported incorrectly. The bottom line is that most taxpayers with these items can benefit from professional help with a deep understanding of tax regulations such as Tax Defense Partners – CALL for your FREE consultation today.
Tax Defense Partners is a full-service tax debt resolution company for IRS and state income tax debt collection matters. We serve individual taxpayers, Corporations, LLCs, Partnerships, and small businesses before the Collection and Examination Divisions of the IRS and state income tax authorities.
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